Ukraine to Receive $200 Million From The World Bank for Energy Efficiency

By Worldwide News Ukraine, PRNE
Tuesday, May 17, 2011

KYIV, Ukraine, May 18, 2011 - The Board of Directors of the World Bank (WB) has approved a $200 million
loan to finance the "Project on Energy Efficiency in Ukraine". The loan will
finance investments in energy saving programs in industrial companies,
municipalities and municipal owned companies, as well as energy service
companies, reports the World Bank on its Web site.

The project is to help Ukraine achieve its ambitious goals to reduce
energy intensity by 20% by 2015 and by 50% by 2030. It will also help the
country reduce its dependence on gas imports, therefore cutting the energy
costs and energy security risks.

"The potential for energy efficiency in Ukraine is enormous. If the
country were to reduce its energy intensity to the level of Poland it could
reduce its energy consumption by about one third. This could translate into a
reduction of at least 30% in the consumption of natural gas," said Martin
Raiser, World Bank Country Director for Ukraine, Belarus and Moldova.

Initially, the news on the loan went public in November 2010, when the
World Bank officer in Ukraine Astrid Munros reported that the project is
almost 50 percent prepared and could be soon adopted by the WB Council.

In February, 2011, Ukraine voiced its plans to attract $3.5 billion in
the energy sector to improve its energy efficiency. Consequently, the Cabinet
of Ministers of Ukraine has increased the forecast of the state program of
energy efficiency funding for 2010-2015 approximately up to $43.5 billion
where $3.6 billion will be allocated from the state and local budgets and the
rest is planned to be attracted from alternative sources.

The World Bank's commitment to Ukraine in 38 projects amounts to about US
$7 billion since it joined the World Bank in 1992. Since then, Ukraine
received support from the World Bank to further its efforts in reforming and
restructuring its energy sector through policy dialogue, technical assistance
and financing of adjustment and investment projects, including two Hydropower
Rehabilitation Projects, Power Transmission Project, Kyiv District Heating
and Kyiv Public Buildings Energy Efficiency Projects, Coal Sector Adjustment
Loan and Coal Sector Pilot Project.

For more information, please contact Maryna Khorunzha +380443324784 news at, Project Manager at Worldwide News Ukraine

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